4. 2
“This is now a continuous
feedback kind of world, and
we need the organizational
nimbleness to respond. ”
CEO, Financial Markets, United States
Leaders are recognizing For some time, businesses have been refining
and optimizing their networks of suppliers and
our new connected partners. They’re streamlining supply chains
and creating massive back-office efficiencies.
era is changing how But something just as meaningful has been
happening in the marketplace — the sudden
people engage. convergence of the digital, social and mobile
spheres — connecting customers, employees
and partners in new ways to organizations
and to each other. These changes put pressure
on the front office to digitize and adapt but
also create opportunities for the organization
to innovate and lead.
5. 3
Three essential imperatives
How to respond
Our study reveals insights from
more than 1,700 CEO conver-
sations and our own management
consulting experience.
Empowering employees
through values
Engaging customers
as individuals
Amplifying innovation
with partnerships
7. 5
Empowering employees through values
“We need to mobilize
our collective brain
power for innovation.”
President and CEO, Consumer Products, Canada
CEOs see greater organizational openness ahead. But as
rules are refined and collaboration explodes, how will
they avoid chaos, protect the business and deliver results?
8. 6
“How do you unleash the
innovative power of the
people who deal with your
customers every day?”
CEO, Insurance, United Kingdom
CEOs have a new They are creating more open and collaborative
cultures — encouraging employees to connect,
strategy in the unending learn from each other and thrive in a world of rapid
change. The emphasis on openness is even
war for talent. higher among outperforming organizations—and
they have the change-management capabilities
to make it happen.* As CEOs open up their
organizations, they are not inviting chaos. The
need for control remains, but it is evolving into
a new form—one better suited to the complexity
and pace of business today.
*Outperformers are organizations that surpass industry peers in
terms of revenue growth and profitability, according to their CEOs.
9. 7
Organizational attributes
Engaging employees
To draw out the best in their
workforces, CEOs are most focused
on three organizational attributes.
Ethics and values
65%
Collaborative environment
63%
Purpose and mission
58%
11. 9
Engaging customers as individuals
“The time available to
capture, interpret and act
on information is getting
shorter and shorter.”
CEO, Chemicals and Petroleum, United States
CEOs are searching for customer insight. But even if they
discover it, are their organizations equipped to respond with
relevance and speed?
12. 10
“Of course we need better
information and insight,
but what we need most is
the capability to act on it.
”
Unit Head, Government, Hong Kong SAR
To engage customers As a group, CEOs are investing more in customer
insights than any other functional area—far above
as individuals, CEOs are operations, competitive intelligence, financial
analysis and even risk management. They are
building analytical muscle seeking a better understanding of individual
customer needs and improved responsiveness.
to respond with relevance Although face-to-face will remain the most
and immediacy. prevalent form of customer interaction, CEOs
expect a step-change in the use of social media.
Given the need for deep customer insight,
outperformers have a distinct advantage. They are
far more adept at converting data into insights,
and insights into action.
13. 11
Change is required to meet
customer expectations
Understand and act
CEOs are implementing extensive
changes to enable faster, more
relevant responses to markets
and individuals.
Improve understanding of individual customer needs
72%
Improve response time to market needs
72%
15. 13
Amplifying innovation with partnerships
“We tend to see everyone
as a competitor, but we
need to see them as
partners…this is a cultural
shift; it’s hard to change.
”
CEO, Banking, Vietnam
With nearly 70 percent of CEOs aiming to partner extensively,
what will make this a differentiating strategy?
16. 14
“In our industry, the biggest
risk we face is not regulatory
mandates, as many think.
It’s industry disruption…”
CEO, Retail, United States
Extensive partnering The pressure to innovate is not subsiding, and
organizations are teaming to meet the challenge.
is providing the edge Compared to their less successful peers,
outperformers are partnering for innovation
CEOs need to take more aggressively. But they are also tackling
more challenging and disruptive types of
on radical innovation. innovation. Instead of settling for simply creating
new products or implementing more efficient
operations, they’re more likely to be moving
into other industries or even inventing entirely
new ones.
17. 15
External partnering
for innovation
Outperformers are bolder innovators
And they are more likely than
underperformers to innovate
with partners.
All CEOs
53%
Outperformers
59%
46%
Underperformers
28%
more
18. To continue the conversation…
For more information about this study Access interactive content and listen to
and to get the full version of this CEOs in their own words by downloading
report, see ibm.com/ceostudy2012 the IBM IBV app for Android or iPad